Senator Richard Blumenthal has called upon Visa to disclose detailed plans and documents related to its agreement with Elon Musk’s social media platform, X. The senator's request arises as Visa prepares to introduce a digital wallet on X, a move announced in late January. Visa, which operates the world's largest credit card network, now faces scrutiny from the Senate following the revelation of this deal.
Senator Blumenthal’s inquiry highlights concerns over potential regulatory conflicts and consumer protection issues. He cited Musk's involvement in weakening the Consumer Financial Protection Bureau (CFPB) as a catalyst for his request. The CFPB would play a crucial role in overseeing the X Money service, raising questions about the service's regulatory compliance and consumer safety.
"Given the unique position of X Chairman and Chief Technology Officer Elon Musk as leader of the Department of Government Efficiency and his recent role in gutting the Consumer Financial Protection Bureau … Visa stands to take advantage of the deep conflicts of interest and unscrupulous conduct of its new business partner." – Sen. Richard Blumenthal
Senator Blumenthal also expressed skepticism over X’s capability to prevent scams and fraud on its platform, which he described as a hub for "bots, scams, and hate speech." His letter addressed to Visa CEO Ryan McInerney seeks records related to the agreement and communications among X, Visa, DOGE, and CFPB personnel. Despite the gravity of these concerns, representatives for Visa and X have not yet issued any comments.
The disclosure of this deal follows allegations that operatives from Musk's Department of Government Efficiency accessed CFPB data systems. These actions sparked accusations that Musk aimed to undermine a future regulator and acquire trade secrets beneficial to his emerging X Money service. This service is part of Musk's broader vision after purchasing the platform, formerly known as Twitter, in 2022.
"These concerns raise questions about X's ability to protect consumers from fraud and scams as it ventures into the financial sector." – Sen. Richard Blumenthal
Senator Blumenthal's request marks one of the first indications of official scrutiny on Visa since the announcement of its partnership with X. The senator's concerns underscore the potential implications for consumer protection as X transitions into offering financial services.